NEW YORK, Oct. 11, 2013 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in The First Marblehead Corporation ("First Marblehead" or the "Company") (NYSE: FMD) of the October 28, 2013 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain executives.
A complaint has been filed on behalf of all persons who purchased First Marblehead securities between November 4, 2010 and August 15, 2013 (the "Class Period").
The complaint alleges that the Company and its executives violated federal securities laws with respect to its disclosures concerning its business, operation, and financial prospects.
Specifically, the action alleges that throughout the Class Period the Company issued false and/or misleading statements or failed to disclose that: (i) First Marblehead's tax treatment for the sale of the Trust Certificate of NC Residuals Owners Trust and similar securities was inappropriate; (ii) the inappropriate tax treatment exposed First Marblehead to significant liability; and (iii) First Marblehead had inadequate internal controls over financial reporting.
On August 15, 2013, the Company announced that the tax liability related to its IRS audit would amount to $300 million plus interest, more than the Company's reported cash on hand.
Following this news, the Company's stock declined $0.57 per share or over 36%, to close at $1.00 per share on August 16, 2013.
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If you invested in First Marblehead stock or options between November 4, 2010 and August 15, 2013 and would like to discuss your legal rights, visit www.faruqilaw.com/FMD. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com or firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding First Marblehead's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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